Investors' Soapbox PM

PetSmart Could Unleash Upside With Petco Buy

The acquisition may be the best potential strategic action for PetSmart.

July 9, 2014

Wedbush

A couple of weeks ago we assumed coverage on PetSmart (ticker: PETM) and rated an acquisition of Petco Animal Supplies a 20% probability in the next year, based on our initial analysis.

In light of recent activist involvement in the name, we redoubled our analysis and delved much deeper into the key issues involved in such a major transaction, which we explore in this report. Our conclusion remains largely the same:...